“EXW” means that the seller allows the buyer to receive products such as basalt slabs, basalt coverings, basalt steps, basalt cube stones, basalt disabled ramps and basalt sinks, produced in certain sizes in the factory and properly palletized, at his own place or at another location he determines (for example, a factory or warehouse). It refers to a transportation agreement that has been prepared.
Main Elements of EXW For Basalt Products:
Delivery Point:
Under EXW, the seller’s main responsibility is to make the palletized basalt products available at his own place or another pre-agreed location.
This specified location is important because all risks are transferred to the buyer at this point.
Cost:
All transportation costs after the starting point are covered by the buyer.
This includes transportation costs of basalt products, loading and unloading fees, and any other associated fees.
Risk:
Once the basalt products are ready at the specified location, the risk passes from the seller to the buyer.
It is one of the Incoterms where the risk is transferred before the products move.
Duties and Responsibilities:
- Seller: Other than making the palletized basalt products ready, it has no other obligations regarding transportation. Seller is not responsible for loading products onto a collection vehicle or clearing products for export.
- Buyer: Buyer must make arrangements for and pay for the transportation of basalt products, loading, unloading, insurance and necessary export/export permits, documents, customs and other customs formalities.
Advantages and Disadvantages:
Advantages:
- For the Seller: Minimum liability and risk. When the palletized basalt products are ready at the specified location, the seller’s obligations are largely fulfilled.
- For the Buyer: If the buyer has better logistics infrastructure or connectivity in the seller’s country, he can get more competitive shipping rates and arrangements. Provides complete control over the shipping process and route.
Disadvantages:
- For the Seller: Possible loss of business from buyers seeking a shipping term who expect the seller to handle further logistics of the basalt products.
- For Buyer: Responsibility. From the moment the palletized basalt products are ready, the buyer must manage all shipping processes and payments, which may present the difficulty of dealing with local regulations of the seller’s country.
Additional Considerations:
- Domestic vs. International: EXW is often used for domestic transactions due to the complexity and risks it introduces for the buyer, especially regarding export permits and local regulations for basalt products in the seller’s country.
- Export Permits: One of the most challenging aspects for buyers under EXW is handling export permits, especially if they are unfamiliar with the regulations of the seller’s country. If the buyer cannot handle these formalities, the contract should state that the seller will assist, or another term such as FCA (Free Carrier) may be more appropriate.
- Insurance: Since risk is transferred before the basalt products move, buyers must be covered by insurance from this starting point if they want protection against possible damage or loss.
EXW places all responsibility on the buyer from the moment the palletized basalt products are ready. This may seem overwhelming for the buyer, but it can offer experienced buyers a level of control over the process of shipping basalt products. It is essential that both parties are aware of the implications of this Incoterm, discuss and document any variations or special responsibilities in their contracts to avoid potential misconceptions or disputes.
Special Situations in the Export of Basalt Products for EXW (Ex Works – Factory Delivery) Delivery
Basalt has a wide range of applications as a natural rock material. The fact that products with unique features such as basalt flooring, coating, steps and other products are in demand in the international market brings with it many different logistic and legal difficulties regarding export. EXW delivery condition plays an important role in the management of this process. However, some special circumstances should be taken into account when exporting basalt products:
Quality and Standards:
The quality of basalt products may vary depending on the standards of the country of export. While the seller delivers his products according to EXW terms, the buyer must know these standards and check their compliance.
Features of Basalt Products:
The weight of basalt directly affects transportation costs and methods. It is essential for the buyer to make logistics planning by taking these factors into consideration, especially during the transportation of large and heavy basalt blocks.
Packaging and Storage:
Basalt can be sensitive to moisture and other external factors. Therefore, providing appropriate packaging and storage conditions is of critical importance to the buyer. While the products are transferred to the buyer’s responsibility at the factory in EXW, it is also the responsibility of the buyer to take the necessary precautions to protect the products.
Country Restrictions:
Some countries may impose restrictions on the export of basalt or similar natural resources. These restrictions may be in the form of obtaining permits or paying additional taxes. Under EXW terms, the responsibility for such permits and formalities lies entirely with the buyer.
Selection of Transport Vehicles:
Depending on the dimensions and weight of the basalt products, it is necessary to choose the most suitable vehicle for transportation. For example, the use of special equipment or vehicles may be required to move large basalt blocks.
Insurance coverage:
Basalt products may be damaged during shipping. The buyer assumes all risks as soon as he picks up the products from the place specified by the seller under EXW conditions, therefore it is the buyer’s responsibility to insure the products.
As a result, although the EXW delivery condition offers certain advantages in the export of basalt products, it brings with it many special circumstances that the buyer should pay attention to. It is of critical importance for the buyer to make detailed planning, taking these special situations into account, for the export process to go smoothly.
